business

Japan's economy shrinks 7% in last quarter

30 Comments
By Yuri Kageyama

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30 Comments
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It is OK, Abe will stimulate us again...

7 ( +9 / -2 )

If the Olympics goes ahead, with the 10 million tourists it brings (and not behind closed doors), that will get things going again.

However almost certainly Tokyo 2020 is off, so the recovery may have to wait until 2021.

-13 ( +2 / -15 )

A recession is pretty much inevitable. Now wait for the Japanese media not to use the "r-word."

10 ( +10 / -0 )

However almost certainly Tokyo 2020 is off, so the recovery may have to wait until 2021.

‘Abe under fire’.

You used to post about PM Abe along with Trump being the envy of the world in terms of leaders along with ‘Aso sensei’ providing his financial expertise.

Do you think he’s doing a good job in terms of dealing with the current situation regarding the virus outbreak, the economy and standing firm on holding the Olympics this year?

5 ( +7 / -2 )

Funny how the article doesn't mention the sales tax hike as one of the factors brining the economy down last quarter. Pre-corona.

9 ( +11 / -2 )

Do you think he’s doing a good job in terms of dealing with the current situation regarding the virus outbreak, the economy and standing firm on holding the Olympics this year?

Whether Tokyo 2020 goes ahead in some form will be taken out of PM Abes hands. It wont go ahead, lets be honest, and yes, it will be a big economic hit.

Being fair to PM Abe and all world leaders, they are dealing with the worst world health pandemic crisis of the past 2 decades. But I would have done things different. Stop the planes from PRC in early February, stop the planes from Italy, brought ashore the Diamond Princess passengers for quarantine. No ruler is immune from mistakes.

3 ( +5 / -2 )

@Whatsnext

It does mention the consumption tax hike in line 5

@Fighto!

Japan is a democratic constitutional monarchy so Abe is not the ruler, the Emperor is.

-1 ( +2 / -3 )

@ Reckless - the government nationalizing private homes would be Communism, no? I agree some incentives should be given to families who inherited and own these properties to voluntarily surrender them.

3 ( +5 / -2 )

Being fair to PM Abe and all world leaders, they are dealing with the worst world health pandemic crisis of the past 2 decades.

Sounds like your claim that ‘PM Abe’ backed up by ‘Aso sensei’ along with Trump aren’t the envy of the world after all. They seem like rank and filers.

6 ( +6 / -0 )

Abe san can only do so much in a risk averse society.

He deserves some credit for breaking up the agri sector.

Instead of tearing up the road every 100 meters and playing games with other "stimulus" gimmicks that keep the oyaji gun in control, they should promote an entrepreneurial climate with interest free loans to ambitious foreigners and Japanese, free trade zones, with self controlled green transport like ebike routes that dont rely on public (forced) transport, and other game changer ideas and stimulus. Right now, stimulus means throwing money into un-stimulated minds and efforts. They threw allot at the Olympics and defense, but both are proving unreliable. Immigration reform? also proving to be a dud, even though I commend his efforts.

5 ( +6 / -1 )

This is the first ever global mass hysteria , looking forward to a Malcom Gladwell book on it in a few years.

1 ( +1 / -0 )

along with Trump aren’t the envy of the world after all.

Actually Trump and his economic miracle are the envy of the world.

Trump is reversing allot of what you find here in Japan, albeit a scaled down version of it. Dems want to do exactly what Japan has been doing for decades. Trump reversed all of that, now your seeing sustained growth like never before. 265,000 jobs in one month? Unheard of. His protectionist polices are different than Japans. He actually has invited Japan to invest more in the US.

-2 ( +3 / -5 )

Now is a good time for the structural reforms Abe always trumpeted. One idea is to take over all these empty houses sitting even in nice neighborhoods in Tokyo and let young families have the land for sell with a zero interest loan to build a house

Good idea, and reform the air bnb law to fit international norms. Allow foreigners to buy up the land (with caps on buyers of course) and let them invest.

1 ( +4 / -3 )

If the Olympics goes ahead, with the 10 million tourists it brings (and not behind closed doors), that will get things going again.

Hosting an Olympics actually hurts the economy overall, not help it (unless you own a taxi, train or hotel)

3 ( +4 / -1 )

Japan is a democratic constitutional monarchy

By name, but in reality it is more of a socialist capitalism

8 ( +8 / -0 )

I just hope the yen keeps strengthening against the pound!

2 ( +3 / -1 )

Always more fear and anxiety it seems.

0 ( +0 / -0 )

This is what happens when a liar rules a country for 7 consecutive years.

I will regain Japan! Thank you Mr. Goldfish abe.

5 ( +6 / -1 )

Time for five more Abe vows before the day is through, and a promise to form a panel to talk about introducing Abenomics again.... or at the very least, to ignore the last few years of failure and blame it all on the virus.

4 ( +4 / -0 )

It is OK, Abe will stimulate us again...

That made me sick to my stomach- no offense mate.

5 ( +5 / -0 )

abe no mix.

5 ( +5 / -0 )

If the Olympics goes ahead, with the 10 million tourists it brings (and not behind closed doors), that will get things going again.

I'm pretty sure that's a parody comment, but am actually interested in the number of tourists the Olympics brings. My guess would be net 150,000 or fewer. Some regular tourists will be scared away by poor availability and higher prices. Include teams and it will be under 250,000.

Getting back to the main story but I guess its pointless looking at a quarter following a planned tax hike in isolation. You need to look at it together with the preceding quarters with the brought-forward consumption to get a clearer picture. This is not to downplay this or say things are going well, because I do not think that is the case. An annualized 7% contraction, (if corona makes it happen) would tip many into poverty. It's Great Depression level.

1 ( +1 / -0 )

Seven point 1 percent (7.1%) in one quarter. Ouch!!!!

5 ( +5 / -0 )

Japan needs another export ban to Korea to save Japan from further economic contraction lol

3 ( +3 / -0 )

Agree with most of the above, except not sure how they can do more Abenomics or stimulus.  They already own most JGB's, a chunk of the JSE.  I guess just print more money and waste it like they have been for the past 5 years or so.

Pitiful.

Should have just taken the medicine of a bunch of failing companies and a stronger yen and allowed the economy to rebalance.

Ridiculous as it is, yen could easily go sub 100 to USD.

1 ( +2 / -1 )

@Jeff Ko

Japan needs another export ban to Korea to save Japan from further economic contraction lol

Yes. Why not? S. Korea also needs it.

Japanese semiconductor material companies are buying tickets to Korea one after another. This is due to a heightened sense of crisis that the government could deviate from global supply chain management (SCM), such as Samsung Electronics and SK Hynix, as the government's export regulations to Korea lasted longer last year. Japanese companies are driving localization by setting up research facilities and major production bases in Korea.

https://engnews24h.com/lets-go-to-korea-rush-of-japanese-semiconductor-material-producer/

2 ( +3 / -1 )

By name, but in reality it is more of a socialist capitalism

Aka Fascism. It never went away because the US backs it up.

0 ( +2 / -2 )

Actually Trump and his economic miracle are the envy of the world.

what miracle is that 6000 point drop in the DOW in 3 weeks, yes that is a miracle.

also of note in the last 70yrs there have been 11 recessions , 49 recessionary quarters , 41 of which were under a Republican president. Looks like Trump may be adding to this list

1 ( +1 / -0 )

@wtfjapan

Actually Trump and his economic miracle are the envy of the world.

Abe and his economic miracle are also the envy of the Asians.

https://www.japan.go.jp/abenomics/index.html

-1 ( +0 / -1 )

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